MANAMA; Bank ABC Islamic, Dubai Islamic Bank PJSC, Emirates NBD Capital Limited, Qatar Islamic Bank QSC and Standard Chartered Bank (collectively the “Initial Mandated Lead Arrangers and Bookrunners”) were appointed to arrange a USD150,000,000 Syndicated Murabaha Financing Facility. Bank ABC Islamic acted as Coordinator and Investment Agent on the Facility. The Facility was signed on 13th April 2017.
The Facility received a good response from the market with 12 institutions participating from GCC, Europe and MENA. Due to the oversubscription, Albaraka Türk decided to increase the facility size to USD213,000,000.
The Facility has been structured as a Shari’a compliant Murabaha Facility with a 370 days tenor, and a Profit Margin of 125 basis points per annum over 3-month LIBOR.
The Facility has given AlBaraka Türk the opportunity to broaden and diversify its funding base, develop new bank relationships and strengthen existing ones. The proceeds will be used to expand its financing activities in Turkey.
AlBaraka Türk is amongst the first participation banks in Turkey and one of the pioneers in the field of interest-free banking. It completed its establishment in 1984 and commenced operations in the beginning of 1985. AlBaraka Türk continues its operations in compliance with the Law of Banking numbered 5411. AlBaraka Türk was founded by AlBaraka Banking Group, Bahrain (“ABG”), one of the prominent groups of the Middle East, Islamic Development Bank (“IDB”) and local partners (“Alharthy Family”). As of 31st December 2016, 66.00% are held by international shareholders (ABG: 54.06%; IDB: 7.84%; Alharthy Family: 3.46%; Others: 0.64%), 9.16% are held by local shareholders and 24.84% are publicly traded on Borsa Istanbul.
Albaraka Turk’s vision is to be the world’s best participation bank in offering interest-free banking products and services that are based on ethical principles and which meet the financial needs of society. At the end of FY2016, AlBaraka Türk had 213 branches, 86 of which are in Istanbul, 126 in the prominent industry and trade centres of Turkey and one overseas branch in Erbil, Northern Iraq, which started its activities in May 2011.
As a prominent participation bank in Turkey, AlBaraka Türk enjoys a market share of 24.7% in the participation banking segment by asset size in FY 2016. Compared to the same period of the previous year, AlBaraka Türk balance sheet grew by 11.1% in the FY 2016 with total assets of TL 32,851 MM (USD 9,359 MM @ 3.5101) compared to total assets of TL 29,562 MM (USD 8,421 MM @ 3.5101) as of FY 2015. The Bank had shareholders’ equity of TL 2,280 Million at FY 2016, TL 2,104 Million at FY 2015 and TL 1,791 Million at FY 2014.
